Task 02: Implement, Monitor and Review Risk Management (Portfolio)
Task 02: Implement, Monitor and Review Risk Management (Portfolio)
Task 02: Implement, Monitor and Review Risk Management (Portfolio)
The Monitoring and control processes are an integral part of all the process groups, and
interact with each process in numerous ways:
Internal risks
1. Small size or player in the global market: The business size could also pose a risk
to venture into a new market. If the size of the business is not big enough, it could impede
growth, popularity and capturing the market. Small size could be due to lack of fund,
technical knowledge, skills and experience.
Therefore, MacVille coffee project could be a small player as compared to other companies
who are already in the business with lot of supply chains and customers loyalty. It is
important to identify and assess our size as risk to initiate to venture into the business.
2. Lack of skilled and trained staff: Although we have committed and trained staff at
the current moment but such commitment and skills may not meet the required expectation
with the change in technology, customers need, product diversification etc.
Therefore, lack of skills and knowledge should be identified as risk to assess our own
shortcomings.
Portfolio
A risk management strategy should also include a management framework for the effective
management of risk within an organisation. According to AS/NZS ISO 31000:2009, such a
management framework ‘ensures that information about risk, is adequately reported and used
as a basis for decision-making and accountability at all relevant organisational levels’.
The risk management framework provides an effective structure within which to identify,
analyse, evaluate and treat risks. This framework provides the associated tools and techniques
to apply the risk management process to a particular project or risk management undertaking.
5. Develop and implement proposed risk treatments: Risk treatments are developed to
cost-effectively reduce, contain and control risk. Formal risk management reporting
mechanisms are defined and documented.
6. Monitor, report, update and manage risks: As risks change constantly, the risk
profile is continuously monitored, reviewed and updated by management. New risks may be
identified as more information becomes available and existing risks may be eliminated
through the effectiveness of the risk treatments/actions. Record risks identified through
regular audit on the risk audit log. Record risk management activities on the risk management
register.
Risk management process diagram
This diagram shows the various stages in the risk management processes and those areas
‘communicate and confer’ and ‘monitor and review’ that should be managed concurrently.
Continuous improvement
A good plan of action often includes a mixture of different things such as:
priority and quick attention to hazards associated with high or critical risks
a few cheap or easy improvements that can be done quickly, perhaps as a temporary
solution until more reliable controls are in place
long-term solutions to those risks most likely to cause accidents or ill health
long-term solutions to those risks with the worst potential consequences
arrangements for training workers on the main risks that remain and how they are to
be controlled
regular checks to make sure that the control measures stay in place; and clear
responsibilities who will lead on what action, and by when.
Worapote Promnart
MacVille should inform all relevant persons about the control measures being implemented,
in particular, the reasons for the changes.
MacVille should also provide adequate supervision to verify that the new control measures
are being implemented and used correctly.
Any maintenance in relation to the control measures is an important part of the process. Work
procedures should detail maintenance requirements and verification of the maintenance to
ensure the ongoing effectiveness of the control measures.